that so small in relation to the great deficits that it entirely disappears. This speaks so convincingly that he only deceives himself who does not desire to pay attention to it. It cannot, then, be said that this is a prosperous State; and if we are not so selfish as to pretend to rejoice over the resources of the future, with the facts of the present, while continuing extraordinary expenditure, we must rest for a time, busying ourselves to reconstruct our weakened forces. The Chambers and the Government should combine not to create works which depend on fresh expenditure, whether permanent or temporary, and should attend to the necessities of the country, with the necessary criterion of entertaining only the indispensable.

"The spirit of the Brazilian Parliament bears some resemblance to that of France, as to the enthusiasm with which it faces the resources of the country, and voting expenditure while never consulting the true condition. Between France, however, superabounding in industry and commerce, and Brazil, rich in natural gifts, but poor in industry, having its gaze only fixed on a husbandry which is preparing for the sacrifice of a great change by the transformation of its slave-labour, and without great hope of this being solved without a crisis, the difference is extraordinary. Great social and economic problems are not solved by enthusiasm ; they require calmness, prudence, and reflection, which are elements constituting the well-being of nations.

I hardly consider it necessary to apologize for quoting at such length the opinions of another, which are given with the authority of one who really knows the details of the subject. It is a trite saying, that statistics can be so arranged as to prove anything; but it would, I humbly submit, take a clever man to work out the items I have given so as to prove that Brazil is a prosperous country, or even that she is advancing financially, as the yearly increasing receipts are overshadowed by a yet greater expenditure. When one considers the yearly deficits, and how the Government of Brazil meets them-by continual issues of paper money, by bonds, by internal and foreign loans-it does appear a marvel that

the confiding public should advance money for the purpose of paying the ever-increasing deficits of an extravagant and impecunious country. Certainly, Brazil has not as yet repudiated her debts; but the payment of interest is out of capital.

It is considered by many in Brazil that the existence of the empire depends upon the life of one man-the present far-seeing, admirable, intellectual, and scientific Emperor; a man whose personal and domestic relations as husband and father are irreproachable. But at his death the future of the empire is far from being secure. The question, therefore, arises, What is the security of Brazilian stocks? Is the outlook good for investors? The answer from every conscientious Englishman in Brazil is an emphatic no. The present system has been undeniably bolstered up; by whom, does not signify; but I think it sufficient to draw attention to the foregoing pages to prove the truth of this statement. Why are Brazilian stocks so high when she has only a paper currency, while the northern republics, with Uruguay, the Argentine, and Chili, all of which have silver, are not held in such high repute? The whole fabric of Brazilian finance rests upon a very frail foundation, and, should there not soon be a material and radical change in the tactics of that empire, the investors in her stocks may find themselves ere long-though I hope the day may be long deferred-in a sorry plight.

NOTE TO PAGE 287.
Slavery in Ceará.

The Rio News of February 24, 1886, referring to the Jornal do Commercio of February 21, states that "to the infinite shame of " the Province of Ceará, "and to the bitter humiliation of every honest abolitionist, it now appears that a gross deception has been practised, and that Ceará is not entitled to the honours awarded on the occasion of the enthusiastic reception of the news that Ceará was the first free province of the Empire. According to the Fornal, the municipality of Milagres then possessed 300 slaves which were not redeemed, and of which 298 are in slavery down to this very day.

With this deception before us," even should these slaves be liberated, we shall not be able to free ourselves from the fear that there may still be men there from whom the shackles of servitude have never been stricken." The inhabitants of Ceará have not only "discredited themselves before the world, but they have done a thing which cannot fail to still further discredit the sincerity and trustworthiness of the Brazilian people."

POSTSCRIPT.

The following are extracts from an article on the “Brazilian Budget," which appeared in the Statist of August 8, 1885.

"The Budget of the Brazilian Minister of Finance, presented to the Chambers in May last, is an elaborate document of over 400 quarto pages, and additional tables, etc., of about equal extent. The mixture of ordinary and extraordinary revenue and expenses, balances from previous budgets, deposits, and extraneous matter in the estimates is most bewildering; but reckoning the ordinary and extraordinary items together, the deficits may be placed at an average of about 26,000,000 milreis for each of the three years ended June 30, 1885. The result for 1883-84 showed a deficit of 23,762,967 milreis. The expected deficit of 1884-85 was 29,824,000 milreis, and the Minister in his explanation, as recently as last month, said he adhered to the estimates of revenue. The estimated excess of expenditure over revenue in 1885-86 was placed at 19,362,000 milreis, and for 1886-87, the forecast is of a deficit of 17,869,000 milreis. The estimates were qualified when made by the supposition that the revenue should not exceed nor the expenses be reduced on the estimates. According to Mr. Sandford's report, referred to in the Statist of April 4 last, between 1873-74 and 1882-83 inclusive, the deficits had amounted to some 288,000,000 milreis, or an average of 28,800,000 milreis, and they had been met by the creation of 71,000,000 milreis in Treasury bills, 129,000,000 milreis in internal loans, 80,000,000 milreis in foreign loans, and 40,000,000 milreis by issues of notes. The more recent deficits have been met by further creation of Treasury bills, and the extension of the note circulation is contemplated. Efforts have lately been made to effect economies in expenditure, but the results are not so great as could be desired.

"The comparison of revenue and expediture for 1881-82, with the estimates of 1885-86 and 1886-87, is as follows:

"The Senate and deputies have, it is stated, agreed to the bill to authorize the issue of 25,000,000 milreis of notes. The banks,

in their balance-sheets of June 30, show that the Government owes them just 60,000,000 milreis, viz. :

On Treasury bills (old and new issues)
Account Current with Bank of Brazil

Milreis.

55,524,000

4,198,638

59,722,638

... The bills discounted and the call loans at the bank tend to decrease, for the necessities of trade cannot resist so powerful an antagonist as the Treasury. The actual cash in the seven banks is returned as 11,214,587 milreis. This cash is an asset against deposits on call, and with fixed maturity of no less a sum than 127,667,000 milreis."

The Rio News says, "The Treasury of the empire of Brazil has now reached a point when little short of a miracle can relieve it, if its authorities continue to follow the same beaten road."

REPORT OF THE BRAZILIAN FINANCE MINISTER.

The Rio News gives some interesting extracts from the last report of the Finance Minister of the empire,* from which I make the following notes :-The minister proposes additional taxation— (1) on lands served by railways and river navigation; (2) on agents, directors, or managers of companies, pawnbrokers, slave-dealers, dealers in lottery tickets, and various other occupations, and on certain factories; (3) on tobacco; (4) an increase of from forty to fifty per cent. on stamp duties and charter companies. "The minister does not agree with the proposed increase of ten per cent. on imported wines, etc., which are already heavy, and because the proposed addition would further stimulate the manufacture of artificial wines, spirits, etc., which have already flooded (invadido) the markets of the capital and provinces to the manifest prejudice of the public health. Therefore, what should be done is to impose a tax of one hundred reis per litre on the produce of these factories,

* South American Journal, July 25, 1885.

†The italics are mine. Would that all English statesmen recognized the increase of this evil in our midst, to the prejudice of the legitimate wine and spirit merchant, as well as to the injury of the health and vitality of the nation.